Archive for September, 2019

The Many Cost of Buying a Home in the UK.

Buying a home is almost guaranteed to cost more than you think because it’s not just about getting a mortgage, grabbing the keys and, going straight to pack in, no, that’s not how it works. 

Aside from finding strategic ways to raise a mortgage deposit, there are some other costs to factor in to know the true cost, or at least, to have a better estimate of what it takes to buy a home. 

These are costs to factor in.

Mortgage arrangement fee

“An Arrangement Fee (sometimes called a Completion Fee or Booking Fee) is an administration charge made by lenders for arranging credit – usually for a mortgage or for a business loan and sometimes for car finance.”

You can expect to pay your lender an arrangement fee, although, it varies, £1,000 is typical. In some cases, this is non-refundable, even if the purchase falls through.

Valuation fee

“A valuation is an assessment of what your home is worth, calculated by a professional valuer. A valuation report is typically required whenever a property is bought, sold or refinanced. The valuation fee is paid to cover the cost of preparing a valuation report.”

The valuation fee offers sufficient security for the loan. Its cost varies according to lender and purchase price, but you can budget for £300.

Legal fees

Some lenders contribute to legal fees, especially with a condition of using a solicitor approved by them. If you’re paying for your conveyance, you’re looking at about £500-£800, depending on the purchase price.

Stamp duty

Stamp Duty Land Tax ( SDLT ) is what you pay when you buy a residential property or land above £125,00 in England and Northern Ireland. 

Unless you’re a first-time buyer when you pay zero stamp duty on the first £300,000 of any home costing up to £500,000. 

“As of April 2016, there is a 3% increase on top of current rates if you’re buying an additional residential property above £40,000 such as a second home or buy-to-let property.”

The easy way to find out how much is to use one of the many stamp duty calculators online, or contact me for direction with buying a home. 

Surveys

This is another costly aspect of purchasing a home, with a typical survey costing between  £400 to £700. Many people pay for surveys on purchases that do not end with a deal, so budget for two or three as it might sometimes be the case.

Before you buy a property, get it checked by a surveyor. This is vital so you understand if there are any problems before you buy it, as it could save you money on repairs in the long run.

Removal costs

“Unless you can pile your belongings into the back of a car, factor in a removal van. These start at £100 for small local moves, but can easily run to £1,000 for shifting a family’s worldly goods long distances.”

Home repairs, furniture, and extras

From paintwork to leaky sinks, put aside some cash for unexpected property maintenance. And if you have to buy everything from beds, sofas to lawnmowers and carpets, you figure that in too. 

There might also be the need for some essential extras like light bulbs, lampshades, toilet brush, washing up bowl, doormats, hooks and extension lead. 

Do you see that when you sit down and write out these things, you will discover that there are other costs of buying a home other than the mortgage deposit itself?

All of these when factored in, make the process of purchasing a house easier and achievable in record time.  

Do you have any more questions on this, need any kind of help in the property investing and your personal development? I’m here to help you, so click below to book a free 30 minutes call with me. 

Book a call with me here.

Sources: 

  1. https://www.checkmyfile.com/jargon/arrangement-fee.htm
  2. https://www.ratecity.com.au/home-loans/faqs/valuation-valuation-fee
  3. https://www.moneysavingexpert.com/mortgages/house-buying-guide/

How to Motivate Yourself With the Goal Setting Theory

A research report has shown that employee motivation levels are declining in the UK, with 29% of employees surveyed in 2018 acknowledging that they were not motivated at work in the year before. 

When asked about what affected motivational levels in the workplace, some of the answers were: lack of career progression, not having a good work-life balance, and working at a job that is not challenging. 

People want a good work-life balance that gives a sense of satisfaction and growth, but that does not come free to anyone. And that perhaps is the root cause of declining motivation levels in the society. 

How to be motivated 

First, you need to acknowledge the fact that humans have one capacity beyond that of the lower life forms: “We have the volitional power to choose our own goals. We have the power of reason which includes the capacity to form concepts through the process of thought.”

Hence, the goal-setting theory developed by Edwin Locke and Gary Latham; both Professors of Motivation and Organizational Psychology. The theory, based on more than 1000 studies, explains how goals can be used to regulate and improve your performance by identifying the type of goal and what it requires to get done.

Types of Goals

The goal-setting theory posits that there are four basic types of goals. They can be for:

  • Behavioral (e.g., contact five potential clients every day), 
  • Learning (e.g., discover 5 ways to improve your putting)
  • Outcomes (e.g., increase sales by 10% in the next 12 months). These can be used separately or in combination.)
  • On tasks where new knowledge has to be acquired, as to do one’s best is performing a task.

Attributes of effective goal setting. 

Goals need to be clear (specific). If they are vague or ambiguous, people will interpret them in their own idiosyncratic way. For example, telling people to “do their best” has no clear meaning. It does not lead people to do their best because the best is not defined. If you want people to do their best or come close to it, the goal has to be both specific and challenging.  If the goal is too easy, people will not have to try hard to reach it. If a goal is too hard (e.g., impossible) people may give up pursuing it.

A word is in order about what Jack Welch, the former CEO of General Electric called “stretch goals.” These are goals that are so hard that they may not be possible to reach (e.g., increase sales by 100% in the next year). However, under the right conditions, stretch goals can still be a motivation if it is made clear that it is for the purpose of stimulating creative thinking (“thinking outside the box”), and that there will be no penalty for not attaining them. 

However, specific, and challenging goals affect action in three ways. It helps to call attention to what is important and thus to direct our actions accordingly.  

Setting goals also help us to mobilize effort in proportion to what a task requires and challenging goals lead to more energy being mobilized than easier goals. 

Further, goals affect persistence. If people are committed to the goal, they will not stop until it is reached. Finally, goals motivate people to utilize or search for task strategies that will be effective for attaining them.

One of our utmost goal in life is to be a happy-go-lucky fellow that is highly motivated to pursue and have a fulfilling life.  But for that goal setting to be effective, there are conditions required. 

  1. First, there must be objective feedback to reveal the degree of progress toward the goal. This allows people to adjust their effort level and strategies especially if they are not making progress.  
  2. Second, there must be a commitment to the goal. Commitment is highest when the goal is important to an individual, and the individual has the knowledge/skill needed to attain it. 
  3. Knowledge or skill (i.e., ability) is a third moderating condition. 
  4. Finally, organizational support in the form of resources (i.e., time, equipment, and budget) facilitates goal attainment.

A non-motivated life is an unfulfilled life, don’t let that be your case. Pick a pen or grab your digital notepad now and start setting smart, realistic and stretch goals, because it will help you become highly motivated and therefore more successful in life. 

P.S: Do you have any questions on how I consistently pursued my goals until I succeeded as a property investor and how you can too? 

Click here Book a free 30 minutes consultation with me today.